overlaid in the existing area. i would be more than happy to amend the legislation to create that, but at risk of also perhaps stimulating a resistance by those who would like this to be prohibited area, that remains open to debate. so i would be more than happy to. vice president adams: my concern is along the sixth street corridor because i know there are issues on the west side of soma and we could exclude that but i know the small businesses and coffee houses and that resurgence in that sixth street corridor, that this legislation would help a lot of those businesses. >> i absolutely agree with that. i tell you what our strategy was, was to seek as much consensus -- it's not easy -- but try to seek as much consensus between resident-driven organizations or

resident-merchant driven organizations in these neighborhoods that would welcome this. some, in particular, south of market, feels strongly that there will be a cordoned off area that is not necessarily enabled to benefit from this legislation. do i think that's a wise idea? not necessarily. but i do believe that perhaps lessons learned, they may warm up to such an idea later on. president o'brien: commissioner dooley? commissioner dooley: i was wondering about the part of the legislation that says it's 10:00 p.m. for the first year and then they can apply to be open until midnight. my only hesitation with that is that i feel like midnight is heading toward late night again and i would feel that some of the neighborhood residents will feel like it's easier to accept

if it's strictly 10:00 p.m. i just wondered why you had that kind of gray zone there. >> it's up until 10:00 p.m. commissioner dooley: but it says after the first year it can be extended till midnight. >> well, i think based on good behavior, i was looking for an incentive in the fact that it could be renewed but we were looking to incentivize. that's something that, you know, you think would somewhat counteract, i think, the corpus of this and i'm open to that. commissioner dooley: or at least maybe allowing districts to keep the line at 10:00 while others would be o.k. with continuing until midnight. >> all right. so duly noted. i'll keep an open mind to that.

president o'brien: commissioner clyde? commissioner clyde: supervisor, thank you for sponsoring this legislation. it is very dear to my heart. i am a small business owner who would love to have it in the code that i can offer entertainment in my small establishment in the afternoon hours during sunday brunch and that we can do it without, you know, real restriction. this is for live performance, this is for small venues whose place is not principally as a place of entertainment. i mean, my preference would have been to exempt all small venuess with fewer than 50 people just completely as the city of oakland did but, of course, that was not possible, so i think this is a great compromise. i would encourage you to look at the n.c.t. districts, the westportal, i believe, is currently not in the plan. >> that's correct.

commissioner dooley: and also, back to the south of market, the small business community, i think with outreach and information may be more supportive of this. there are restaurants and venues that would like this and, you know, i would just hate to see them excluded if there were a way to draw, that a neighborhood commercial district could say in the planning code, we would like our district to look like this after the fact, but i do think that there's some wisdom in going broader and then allowing a neighborhood to drill back down, as opposed to just exempting at this point, going the other way. >> my instinct is with your instinct, the politics, and in us trying to, i think, appeal to many representatives citywide

but those who feel strong about the idea of keeping the prohibitions in place for whatever reasons that they want to deny the future bob dylans or tracy chapmans to come in their cafes or restaurants to play on the cheap, i don't know. but in this particular case, allowing that entree seems to create some concern so i'm hoping that the test is that this initial step of our legislation works and works quite well and that i think it may be due time people will see the benefit of that by the word of mouth stream to business to business that will signal to those in the forbidden corridors that they, too, may want to join. commissioner dooley: and i want to point out the public safety benefits in having a lively and

engaged street scape in our commercial district and the benefits of having young people engaged in art and performance with all their neighborhoods. most of our neighborhoods are mixed neighborhoods with young, middle-aged and elderly people all with all kinds of skills that should be offered in our cafes and bars and restaurants and art spaces so thank you very, very much. >> my pleasure, but you're right, initially the legislation was citywide, it was vast, and did not overlay with the existing prohibitions but created the new permitting structure as a right for everybody citywide. we received considerable feedback, both enthusiastic support and those who had advocated for prohibitions in their particular mixed use corridors, they wanted to retain those prohibitions so i think it will take a little show-and-tell to explain why i think this will

be uniquely important economically to the business environment and then helping put, you know, san francisco's enriched environment of artists and musicians to work throughout the city and i think that this can catch on, i really do. president o'brien: commissioner adams? vice president adams: i appreciate your comments because you hit the nail with that one and i think about, you know, san francisco's a tourist town, o.k., and we get people from all over the world and a lot of conventions here and a lot of people come here because they want to do stuff in the evenings and this ordinance will make people go out and get into the neighborhoods and see our city and want to come back and back and back and spend money in our small businesses and cafes and everything so i really like this, but i do like to stress the area south of market, westportal, pacific avenue, that i didn't see on here, because i do think it's important that --

i mean, i love this legislation. i think it will help tourism but i would like to see it citywide. >> i agree with you. vice president adams: i know there's the politics that you have to deal with but i can't thank you enough for this legislation because it will help a lot of these small businesses, especially the cafes and small restaurants and bars because a lot of them don't do entertainment because it costs too much. supervisor mirkarimi: so we're looking at about 30% of the cost of what is already required of what the permitting and the accessory costs are so for us to create a new tier at 70% reduction at the current costs and thinking there are hundreds -- and i'm not kidding, what we've been able to survey in the corridors eligible for this -- hundreds of cafes and restaurants that we think that could take advantage of this in the not-too-distant future over

that period of time really could change the landscape of entertainment in san francisco and helping the businesses that really are looking for as much of a leg up as they possibly can. you know, and keep in mind, it wasn't that long ago that we just inaugurated the first park in san francisco in the fifth district where the impression of many visitors to san francisco is that we would be the u.s. version of maybe paris, france, where they would expect to see a lot of outdoor seating and more cafes and more sort of the sidewalk engagement where people are sit being and dining and they're enjoying and there's music and it really is only in the last four years has this commission with the planning commission and entertainment commission been able to coalesce through the mayor and board of supervisors together by now emancipating our sidewalks so that there is that vibrancy. so this is really i think just a

next step from what had already been instigated recently and we're getting that feedback from tourists and people visiting san francisco and from residents that they're liking to see the street activity going on. it's happening in my colleague's district, supervisor campos, you'll hear from shortly. it's happening in the fifth district, it's happening throughout many of the sectors of san francisco. and i think this will fit nicely to that particular goal. president o'brien: commissioner o'conner? commissioner o'connor: , a couple of other comments. thank you for putting the legislation together and addressing an issue that should have been addressed a long time ago. first comment was, ticketing events, perhaps, one line to be drawn is that if people are selling advanced tickets, if it's like billed as a show, it doesn't qualify under this legislation. supervisor mirkarimi: right.

commissioner o'connor: so that smaller spaces can gain cheaper access to putting on performances that aren't billed as shows, so to speak. second point was to address commissioner dooley's comment about the time. having experienced putting on shows, i think for the nature of this legislation, 11:00 -- like 10:00 is too early but 12:00 might be too late. 11:00 sounds about right, when a lot of people want to come and see a performance start around 10:00. like you'll have somebody go on before at 9:00 and somebody go on at 10:00 and 11:00 should be fine to end by but that could be addressed further down the road. supervisor mirkarimi: i think we can do that as this advances to the board of supervisors. i think that's very reasonable. president o'brien: commissioner riley?

commissioner riley: thank you, again, for sponsoring this legislation. and i think it's a great idea to lower the application from 1700 to 385 and renewal at $139. i'm curious why $385 and $139. supervisor mirkarimi: this, believe it or not, took the largest amount of time with the city attorney and planning department and entertainment commission, we have to be be absolutely precise about the science as required by law to affix a particular fee system so that it covers the cost of those who are granting the permit. so it strictly is a cost recovery of the administrative process of the permit in itself and that's typically the gauge that's used to help determine how fees are set based on capacity, meaning the size of the place, the businesses that

is requiring it and other variables. president o'brien: any other commissioners? seeing none, for myself, we've read this and it came before us and the subcommittee quite a while ago and we all generally supported it. we see the common sense behind it. i won't regurgitate what's already been said because it kind of covers everything and i don't mean to make you repeat yourself but just for clarity because these were things that came up and were foggy during the discussions, we saw some very complicated maps trying to squeeze this thing in a way that made everybody happy so now it's been simplified. those areas that are already zoned for a regular entertainment permit are now in this area that qualifies for the light entertainment permit, right? supervisor mirkarimi: that's right. the new limited live performance permits will cover the same area in the city where the place of

entertainment permits are currently allowed as of right with the conditional use. president o'brien: and for the south of market situation, we're just going to have to kind of leave it the way it is and leave them out of it for now in the hopes that maybe they'll see the light later on? supervisor mirkarimi: that's another way of putting it. i would certainly welcome interest enlightenment that would i think activate their participation in this, but out of professional courtesy to the host supervisor and the resident neighbors in the areas where there's prohibitions, we decided to keep it out and just make it simple. but, you know, there's a big leap from what advances from this body and feel free to make recommendations that escort this legislation to my colleagues that suggest if we want to expand or elaborate on this, i will be more than happy to carry that message. president o'brien: you may not have gotten this.

it's dated 6/13, but it's from matthew tomly expressing concern that they're not going to be included within the area. supervisor mirkarimi: i didn't see that, no. president o'brien: it's dated today. i just got it. i'll just say that this indicates that there's a body of opinion that would definitely like to be included in that area so it's a voice, a legitimate voice that ought to be heard and maybe we'll reach out to them and they've mentioned that they're having a meeting on monday, june 20, for anybody that wants to attend it so i'll put that out there. i personally support this legislation. i think it's very common sense piece of legislation and i support what commissioner o'connor said. 11:00 is a better time. i don't think that will upset too many people so i'd like to go on the record as supporting that adjustment to it. director? director: you just made mention

of the letter from urban solutions in support of the legislation? president o'brien: yeah. with that, i'll hand it over to the public for public comment. supervisor mirkarimi: i just want to underscore because i know how modest regina is, but she was a big help in this legislation, with the office of workforce development and i very much appreciate that and the entertainment commission and the city attorney's office because it took a bit of navigation to create a new permitting system at a lower cost for a whole population that's never been represented before so this is a bit of a win-win if we're able to make this thing stick. thank you. president o'brien: thank you, supervisor. do we have any public comment, if anybody would like to comment on this matter, please? secretary: public comment will be limited to three minutes. we have elliott wagner and rob

black. >> i'm elliott wagner from the westportal and represent the merchants there. first of all, i would like to applaud the supervisor for making this legislation. president o'brien: make sure you speak into the mic, please. the other one. >> i think it's going to be a great stimulus package for small businesses, and he asked for some enlightenment about the excluded areas and westportal was one of them. maybe i can give him enlightenment there. a lot of the regulations, especially ours for our n.c.d., were created in like 1980 and that was 30 years ago, and the entertainment category was very, very in conflict and it had no subcategories and at this point westportal would still object to the much larger regulations for

entertainment, but now that you have a subcategory that's the limited live performances, westportal would be in favor of that and if that tier existed at the time that our n.c.d.'s were created, we would have asked that those be included. really, to exclude them, and i know to wait to say we're going to do this down the road, is putting areas like westportal at a distinct economic disadvantage, waiting for two years or a year or two for these to come about while everyone else is having the limited performances makes it very, very difficult for our businesses to compete. i mean, you know, you can go to one place and have it and another area that's very, very close by not have it, it puts us at a real distinct disadvantage. we're sort of a sleepy area, you know, westportal basically now shuts down at 9:00 or 10:00 and

this would give us an opportunity to get more people in, to get younger people in with disposable income and really help westportal stay on the map, so i'd like for you to consider that. president o'brien: thank you. next speaker. >> good evening, commissioners, rob black from the golden globe restaurant association here to represent our nearly 1,000 member locations throughout the city and the bay area. i want to start off with saying how excited we are with the legislation and supportive of the supervisor's efforts and really want to applaud that because he's shown great leadership in an area that really will make a big difference for local businesses, and for residents, quite frankly. this will enhance the experience of going out, it will make our neighborhoods more vibrant, more exciting, and the dining experience more exciting, so

we're very supportive of that. the only comment that i would make is reiterating what was said by the previous speaker, we would urge that this be citywide. we think there are many businesses, whether westportal or south of market, that would really benefit from this activity. as we were discussing -- as the commission was discussing, this is a tourist-driven town in many ways as far as economic activities. we had 16 million tourists come to san francisco last year. 50% of those tourists said they came to san francisco, the number one reason was to eat. that's eight million people coming here to eat. that's fantastic, but it underscores the importance of the industry we're talking about and making it more exciting especially around that convention area, as well, in the south of market, a more pleasurable dining experience, coffee experience with brunch, that's great for the city. it means they come back. it means they spend more money next time so we would encourage you and encourage the supervisor to expand the scope but really applaud his leadership and continue to support the legislation.

thank you. president o'brien: thank you. any further public comment? sorry, i can't -- seeing none, we can take an action item on this, right? can we have a motion from one of my fellow commissioners? >> i motion to approve this ordinance but i'd like to motion that we approve it citywide including the south of market and westportal and pacific avenue. >> make that a recommendation? >> approving it, recommending that we also include the south of market, westportal and pacific avenue n.c.d.'s. >> can we also incorporate the 11:00 p.m.? >> yes, at 11:00. >> i second. president o'brien: o.k. do we need to read it out, chris? or just take a count? secretary: read it out.

>> point of clarification. is the modification for the 11:00 p.m., then, to extend the 10:00 p.m. time to 11:00 p.m. and then but not include the additional hours up to 12 p.m.? president o'brien: yes. all those in favor, i guess. >> aye. >> aye. >> aye. president o'brien: any no's? motion is approved. secretary: commissioners, you are on item no. 7. briefly, item no. 2, presentation of the small business commission certificate of honor recognizing a local small business, mac, as part of s.b.c.'s small business recognition program.

>> it's my pleasure to give this award this evening to an outstanding small business, mac, or otherwise known as modern appealing clothing. not only are they just an amazing paragon of a successful small business but they are also really pioneers who go out of their way to promote underused neighborhoods. they, being such a successful business, have, over the years, made themselves relocate to underserved, less busy areas, and have helped to just make all the boats rise in that area because they, themselves, are such an outstanding business.

so without further ado, you want to come up? let me read our proclamation. on this monday, june 13, 2011, the small business commission is proud to acknowledge the contribution that the auspatell family and modern appealing clothe has made to the community of san francisco. mac has been a vibrant part of san francisco's family of locally owned retailers since 1980. mac is recognized by the s.b.c. as also being a retailer that supports and promotes local

designers and in their new location, 50% of the goods in the yellow building will be made in san francisco. the auspatell family is active in the community, serving on the board of directors of paws and the creative growth center. mac and the auspa. family demonstrate the growth factor that small businesses provide to san francisco. [applause] >> thank you so much. and on behalf of my family, my mom, gerry, my sister, chris, we thank the commission for this recognition and only feel more invigorated to do more business and create more businesses in san francisco. thank you. >> can i add a couple of quick words, please? i want to thank you and acknowledge other small businesses that take risks and open businesses where others

don't exist such as, the store on post street, when there was no stores in that area and your store popped up and really invigorated a lot of small micro businesses in that area and you've done the same thing with grant and also in hayes valley so thank you very much for helping trigger growth and activity in the city. thank you. >> we love our city. so thank you all.

secretary: commissioners, you are on item no. 7, discussion on possible action to make recommendations on board of supervisors on board of supervisors file no. 110546, administrative code, healthcare security ordinance. president o'brien: o.k. we have a number of presenters tonight beginning, of course,

with supervisor campos. welcome. supervisor campos: thank you very much, mr. president, and i want to thank the members of the small business commission for giving me the opportunity to be here today. i'm very proud to speak to you about this piece of legislation and before i begin, let me thank my fellow members of the board of supervisors for their co-sponsorship of this legislation, board president david chiu, supervisor avalos, ross mirkarimi, jane kim, thank you for their sponsorship. we are here today to talk about a very modest piece of legislation that essentially tries to make sure that in the course of implementing the very ground-breaking universal healthcare legislation that we indeed live up to the original intent and spirit of that legislation. i'm proud to say that i come before you with a full support

of the father of universal healthcare in san francisco, then supervisor, now assembly member tom omyiano because this is a common sensicle piece of legislation that is essentially trying to address an unintended consequence, a loophole that was unintended to be there when healthy san francisco was first enacted. for members of the public who are watching and members of the audience, to remind you a little bit about what the ground-breaking piece of legislation that was introduced did, it required that employers who have more than 20 employees and those that have 20 to 99 employees, essentially, and those who have 100 or more, that they make specific money available so that money can be spent by their employees on their healthcare. i don't need to tell you how, since the years that healthy san francisco has come into being, howe